Bitmain has explained its $6 billion unrealized (paper) losses as expected during the market downturn. The company stated that its Ethereum-based balance sheet is specifically designed to track and outperform Ethereum’s performance throughout the entire market cycle. This means that temporary losses may occur but are considered normal within the long-term strategy. Bitmain, a leading cryptocurrency mining firm specializing in Ethereum mining, faces such losses due to the price volatility common in Ethereum, the second most popular cryptocurrency after Bitcoin. Crypto market analyst Tom Lee described the situation as “planned,” indicating that Bitmain’s investment strategy aims to deliver better returns over the long run despite market declines. While such losses are common given the crypto market’s instability, experts advise companies to strengthen and diversify their investment strategies to mitigate the impact of market fluctuations.
Source: coindesk
